Pump.fun Launches BOOST Mode, Aiming to Reinject Permanently Locked Liquidity into the Token Market

BlockBeats News, July 21 — Meme token issuance platform Pump.fun announced the launch of a new BOOST mode, setting it as the default activation mechanism for all newly issued Pump.fun tokens moving forward. This feature aims to address the longstanding issue of "dead liquidity" during token migration processes by reinjecting permanently locked liquidity into the token market through a buyback and burn mechanism. Pump.fun stated that over $100 million in liquidity is permanently lost annually during token migrations, rendering these funds unavailable for market liquidity support. Historically, approximately 20% of liquidity for each migrated token remains locked in liquidity pools (LPs). Even if all traders sell their holdings, a portion of funds remains permanently in the pool. BOOST mode will utilize these locked funds, automatically reinjecting them into the market within 5 minutes after each token migration. Specifically, BOOST mode will execute buybacks using time-weighted average price (TWAP) mechanisms post-migration and automatically burn the purchased tokens. For example, the SOL trading pair will reinject 17.6 SOL, while the USDC trading pair will reinject $2,516. Pump.fun emphasized that this mechanism does not require manual activation by users. All new Pump.fun tokens migrated after 10:23 AM Eastern Time on July 21 will automatically enable the BOOST configuration, whereas tokens migrated earlier or issued via the Mayhem platform will not include this feature. This upgrade aims to enhance trading experiences and improve the long-term efficiency of liquidity utilization within the ecosystem. [Original Link]